Two Accused of Embezzling Yacht Maker

An executive of Islander Yachts Inc. and her husband have been arrested on suspicion of embezzling more than $400,000 from the company, Irvine police said Wednesday.

Arlone Sallee, 51, controller of the firm, and her husband, Arnold, 61, were released from Orange County Jail on $250,000 bail each after the Laguna Hills couple had been taken into custody Tuesday.

Police said they began their investigation eight months ago based on information provided by the yacht company’s parent firm, Fuqua Industries Inc. of Atlanta.

Fuqua officials told officers they had launched an internal audit last spring after concerns were raised about certain accounting procedures. The audit, investigators said, uncovered unexplained losses totaling $473,573.

Police turned their information over to the district attorney’s office, and warrants for the Sallees’ arrest were issued.

Islander Yachts, which was founded in 1967 and employs more than 250 workers, was purchased by Fuqua Industries in August, 1980, and Sallee was kept on as controller by the new owner, police said.